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New AI Increasing 3D Model production up to 40%
Search engine has over 200,000 3D models with unlimited color and texture variations
Nextech3D.ai's AI Search Engine Powered by Nvidia GPUs Accelerating It's Production of 3D Models
Nextech3D.ai (OTCQX:NEXCF)(CSE:NTAR)(FSE:EP2), a patented 2D-3D Generative AI-Powered 3D model supplier (Patent #11,948,248) for Amazon, Miele, P&G, Kohls, and other major e-commerce retailers is pleased to announce the success of its proprietary AI-Powered 3D model search engine launched in Q1, 2024. This innovative AI 3D model search engine uses AI powered by Nvidia's GPUs to speed-up and scale-up operations for the 3D modeling process. The AI search engine uses images to search Nextech's internal library of 3D models and meshes then recommends a close match to the given image. The Company is pleased to report that as a direct result of this AI search engine it is achieving as high as 40% increase in production thus increasing the number of 3D models the company can produce. The Company is continuing to develop patents around its proprietary technology while building and launching breakthrough AI for the mass scale of 3D models, which it sees as a significant growth market in 2024
As a leading 3D model supplier for e-commerce and AR, Nextech3D.ai recognizes the challenges faced by 3D artists and the time required in building intricate designs from scratch. To address these challenges the Company has built this innovative AI-powered search engine that instantly searches for similar model meshes within Nextech's vast 3D model library of 2000,000+ 3D models with similar colours, textures and shapes. This AI 3D model search engine was created in-house by the Company's team of AI engineers and scientists, showcasing the Company's technical strength and expertise.
Watch a demo of the AI-Powered 3D model search engine tool - click here
CEO of Nextech3D.ai Evan Gappelberg commented, "We are investing in our AI capabilities to stay competitive in the 3D model market and we see our AI search engine as just one of our investments that are paying off. Our AI-powered Search engine enabling our production to increase by as much as 40% represents a giant step forward in our Company's ability to scale production of 3D models. By combining our five years of technical expertise in the 3D modeling industry with our new AI capabilities, we're enabling our production capabilities to rapidly scale-up and move ahead in 2024. Our patented and patent pending AI along with new Nvidia GPU tech is allowing us to do things in terms of productivity that we just were not able to do previously, and I expect that to start showing up in the bottom line profitability of our 3D business in 2024."
Some other notable investments in AI that are in the news:
Meta has purchased 500,000 more AI GPUs for a total of 1 million AI GPUs, which is valued at $30 billion
OpenAI CEO Sam Altman plans to spend $50 billion a year on AGI development (artificial general intelligence) by using 720,000 NVIDIA H100 AI GPUs that cost a hefty $21.6 billion.
Microsoft is aiming for 1.8 million AI GPUs by the end of 2024, while OpenAI wants to have 10 million AI GPUs before the end of the year.
Key features of the Mesh Search Tool include:
Advanced AI Algorithms: Nextech3D.ai integrates state-of-the-art AI algorithms to enable precise and rapid mesh searches, ensuring 3D artists can find the matches they need in seconds.
Intuitive User Interface: The user-friendly interface offers a seamless experience built directly into the Company's platform, allowing 3D artists to search the vast 3D model library quickly and effortlessly.
Comprehensive Mesh Database: An extensive and continuously expanding database of hundreds of thousands of 3D parts and meshes. The mesh search tool covers a wide range of diverse products from various industries.
This new tool leverages artificial intelligence algorithms to enable 3D artists to effortlessly navigate and locate specific 3D meshes, streamlining workflows and saving valuable time while increasing productivity.
ARitize 3D
ARitize 3D is your one-stop-shop AR solution with automated 3D model creation at an unbeatable price. Our Artificial Intelligence (AI) will turn your existing 2D product images or CAD files into 4K 3D AI and Augmented Reality experiences. It's fast, it's easy and it will transform your ecommerce website.
ARitize 3D is the One-Stop-Shop 3D + AR solution for eCommerce that is:
Affordable - lowest cost provider
Scalable - fastest, seamless, high quality
Frictionless - requires low implementation effort
AI & ML powered - automated 3D model creation
End to End - from model creation to CMS & AR visualization
Brands are invited to Contact Us to let our team help you start selling using 3D models for your online store today.
Sign up for Investor News and Info - Click Here
About Nextech3D.ai
Nextech3D.ai or the "Company," (OTCQX:NEXCF)(CSE:NTAR)(FSE:EP2), is a versatile augmented reality and AI technology company that utilizes its proprietary artificial intelligence (AI) to craft immersive 3D experiences at scale for E-COMMERCE. The Company's primary focus lies in creating high-quality 3D WebAR photorealistic models for Amazon and various other online retailers. Nextech3D.ai has adopted a unique approach to creating shareholder value beyond its operating business of creating 3D models.
The Company also develops or acquires disruptive AI-technologies, which are subsequently spun out to shareholders as standalone public companies. This spin-out strategy allows Nextech3D.ai to issue stock dividends to its shareholders while maintaining significant ownership in the public spin-out, without dilution to the parent company Nextech3D.ai.
Notably, Nextech3D.ai successfully spun out "ARway," (OTCQB:ARWYF)(CSE:ARWY)(FSE:E65 ) its spatial computing platform, as a standalone public company on October 26, 2022. The Company retains a 49% stake with 13 million shares in ARway Corp. while distributing 4 million shares to Nextech shareholders.
Similarly, Nextech3D.ai accomplished its second spin-out launching Toggle3D.ai, (OTCQB:TGGLF)(CSE:TGGL)(FSE:Q0C ) an AI-powered 3D design studio aimed at competing with Adobe. The Company retains a 44% stake with 13 million shares in Toggle3D.ai Corp.
To learn more, please follow us on Twitter, YouTube, Instagram, LinkedIn, and Facebook, or visit our website: https://www.Nextechar.com.
For further information, please contact:
Investor Relations Contact
Julia Viola
investor.relations@nextechar.com
Nextech3D.ai
Evan Gappelberg
CEO and Director
866-ARITIZE (274-8493)
Forward-looking Statements
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Certain information contained herein may constitute "forward-looking information" under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as, "will be" or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements regarding the completion of the transaction are subject to known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove to be accurate, as future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Nextech will not update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.
SOURCE: Nextech3D.ai
View the original press release on accesswire.com
News Provided by ACCESSWIRE via QuoteMedia
Nextech3D.ai Receives Large 3D AI Purchase Order from Blue Chip Enterprise Customer
- Nextech3D.ai Continues to Sign New & Renewal 3D Modeling Deals plus AR Visualization For Enterprise Ecommerce
- Company Has Expanded into AI CAD-3D Rendering to Capture Larger Market Share
Nextech3D.ai (OTCQX:NEXCF)(CSE:NTAR)(FSE:EP2), a patented 2D-3D Generative AI-Powered 3D model supplier (Patent #11,948,248) for Amazon, Miele, P&G, Kohls, and other major e-commerce retailers is pleased to announce that the Company has received an order for 1,000+ 3D AI models and over 4,000+ 3D AI digital photos in May with delivery set to begin in June with a contract value in the mid-six figures. This large enterprise order is a testament to the company's pioneering AI technologies and expertise in creating 3D models and now renderings of 3D models in 2K, 4K, and 8K for e-commerce enterprise customers across the globe
Nextech3D.ai CEO Evan Gappelberg commented, "This enterprise customer has recognized the significant ROI of 3D models in e-commerce and is now accelerating its purchasing of 3D models. Shopify has reported up to a 93% increase in CTR, a 250% increase in conversions, and a 40% reduction in returns by implementing 3D/AR models on their eCommerce websites. Nextech3D.ai is currently working directly with Amazon, the largest e-commerce marketplace, and some of the world's largest e-commerce retailers including Kohl's. We also offer "one-click integration'' with the largest eCommerce platforms including Shopify, BigCommerce, and WooCommerce, which have rolled out 3D/AR and set the standard for Web 3.0 in e-commerce.
He continues, "Today we are seeing more companies both big and small interested not just in 3D AI models but also in 3D AI digital renders which we now are selling alongside our 3D AI models, creating additional value out of the 3D model itself. 3D AI & AR produces immersive shopping experiences that customers now expect in e-commerce. With our end-to-end integrated solutions, white-glove service, ability to scale production, and large enterprise customers, Nextech3D.ai is emerging as a 3D AI e-commerce leader. These large contracts are critical revenue and cash flow drivers for the company."
Example of the company's new AI Rendering of a 3D Chair & Ottoman in 4K:
Nextech3D.ai Continues to Sign New and Renewal 3D Modeling Deals
The company believes that it can become profitable in 2024 by scaling revenue with 80% profit margins while operating expenses are going down due to its investment in its patented AI. The strategic shift to Hyderabad India aligns perfectly with Nextech3D.ai's commitment to delivering top-tier 3D modeling and augmented reality solutions while maintaining a keen eye on profitability and fiscal responsibility for its valued shareholders.
Why AI and 3D Modeling, and Why Now?
The e-commerce landscape is evolving rapidly, with consumers demanding more interactive and engaging shopping experiences. This is where AI and 3D modeling technology come into play, offering a dynamic, immersive, and personalized shopping journey. The shift from 2D to 3D modeling for e-commerce is a major multi-decade transformation that is being led by AI. This transformation is evident as major brands and companies are incorporating 3D models and AR shopping, including Amazon, Walmart, CB2, IKEA, Sephora, Target and more.
Amazon (AMZN - Worth $2 Trillion) Amazon is leading this shift, transitioning from traditional 2D images to 3D models for all their products, setting a new standard in online retail. Nextech3D.ai is proud to be a 3D model supplier for Amazon, already creating tens of thousands of 3D models per month.
According to Amazon Prep: Amazon Has Measured the Following 3D/AR Model Benefits:
- an 8X increase in customers who viewed a product in AR at Amazon, from 2018
- 2X improvement in purchase conversion observed on average in 2022 when AR Virtual Try-On (shoes and eyewear) or view in 3D is enabled on an Amazon Product Listing
- 94% of customers surveyed by Amazon said they would use Virtual Try-On again (2022 survey of over 2,000 Amazon customers)
- 9% improvement in sales observed on average when View in Your Room is enabled on an Amazon product listing.
Other Benefits of 3D:
- 3D content that is created can be used beyond the detail page.
- Save money on product photography by using 3D assets to render detailed page images.
- Lifestyle images or other brand marketing content can be quickly created without the need for a studio setup.
- Many 3D content creators can use 3D assets to create animations, videos, and interactive or animated infographics. Clients should talk to their content creators to learn more about capabilities.
The Power of 3D Models in E-Commerce
3D models in e-commerce enable customers to visualize products in high detail from every angle, significantly enhancing decision-making confidence. This shift leads to higher conversion rates, as customers are more likely to purchase when they can thoroughly explore a product. Moreover, 3D visualization reduces returns, as buyers have a clearer expectation of what they are purchasing, thus saving costs, and improving customer satisfaction. Additionally, interactive 3D models increase customer engagement, keeping them on your site longer, which directly correlates with increased sales.
Timely
As online shopping continues to grow, the demand for more immersive and interactive experiences is growing. Businesses adopting 3D models are setting new benchmarks for customer engagement and satisfaction.
Nextech3D.ai believes it stands at the forefront of this mega-trend, leading the shift from static 2D images to immersive 3D experiences. Its patented AI-powered 3D modeling technology creates photo-realistic 4K 3D models that cater to major e-commerce platforms like Amazon. With years of expertise and a portfolio of high-profile clients including Amazon, P&G, Kohls, Miele, and others - Nextech3D.ai is transforming online shopping into an interactive adventure.
ARitize3D is your one-stop-shop AR solution with automated 3D model creation at an unbeatable price. Our Artificial Intelligence (AI) will turn your existing 2D product images or CAD files into 4K 3D AI and Augmented Reality experiences. It's fast, it's easy and it will transform your e-commerce website.
ARitize3D is the One-Stop-Shop 3D + AR solution for e-commerce that is:
- Affordable - lowest cost provider
- Scalable - fastest, seamless, high quality
- Frictionless - requires low implementation effort.
- AI & ML powered - automated 3D model creation
- End to End - from model creation to CMS & AR visualization.
Brands are invited to Contact Us to let our team help you start selling using 3D models for your online store today.
Recent News
- Nextech3D.ai Achieves Milestone with 3D AI Modeling Profit Margins Hitting 80% in Q2 2024 Up From 30% in 2023
- Nextech3D.ai Reports Fiscal Year 2023 and Fourth Quarter 2023 Audited Financial Results
- Nextech3D.ai Joins GlassDollar Network, Expanding Corporate Reach
- Nextech3D.ai Reports 2023 Earnings Growth & Q4 Insights
- Nextech3D.ai Selects AWS as its Primary Cloud Provider to Drive Innovation in the 3D Modeling For Ecommerce Industry With Cutting Edge AI
- Nextech3D.ai Receives Notice From USPTO To Be Granted Patent for CAD 3D Model Part Assembly & Segmentation
Sign up for Investor News and Info - Click Here
For further information, please contact:
Investor Relations Contact
Julia Viola
investor.relations@nextechar.com
Nextech3D.ai
Evan Gappelberg
CEO and Director
866-ARITIZE (274-8493)
About Nextech3D.ai
Nextech3D.ai or the "Company," (OTCQX: NEXCF) (CSE: NTAR) (FSE: 1SS), is a versatile augmented reality and AI technology company that utilizes its proprietary artificial intelligence (AI) to craft immersive 3D experiences at scale for E-COMMERCE. The Company's primary focus lies in creating high-quality 3D WebAR photorealistic models for Amazon and various other online retailers with patented 2D-3D technology. Nextech3D.ai has adopted a unique approach to creating shareholder value beyond its operating business of creating 3D models.
The Company also develops or acquires disruptive AI-technologies, which are subsequently spun out to shareholders as standalone public companies. This spin-out strategy allows Nextech3D.ai to issue stock dividends to its shareholders while maintaining significant ownership in the public spin-out, without dilution to the parent company Nextech3D.ai.
Notably, Nextech3D.ai successfully spun out "ARway," (OTCQB: ARWYF | CSE: ARWY | FSE:E65 ) its spatial computing platform, as a standalone public company on October 26, 2022. The Company retains a 49% stake with 13 million shares in ARway Corp. while distributing 4 million shares to Nextech shareholders.
Similarly, Nextech3D.ai accomplished its second spin-out launching Toggle3D.ai, (OTCQB: TGGLF | CSE: TGGL | FSE: Q0C ) an AI-powered 3D design studio aimed at competing with Adobe. The Company retains a 44% stake with 13 million shares in Toggle3D.ai Corp.
Forward-looking Statements
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Certain information contained herein may constitute "forward-looking information" under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as, "will be" or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements regarding the completion of the transaction are subject to known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove to be accurate, as future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Nextech will not update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.
SOURCE:Nextech3D.ai
View the original press release on accesswire.com
News Provided by ACCESSWIRE via QuoteMedia
Nextech3D.ai Achieves Milestone with 3D AI Modeling Profit Margins Hitting 80% in Q2 2024 Up From 30% in 2023
Nextech3D.ai (OTCQX:NEXCF)(CSE:NTAR)(FSE:EP2), a patented 2D-3D Generative AI-Powered 3D model supplier for Amazon, Miele, P&G, Kohls, Wesfarmers Group "Bunnings" (Australia's largest listed company) and other major e-commerce retailers is excited to announce a major milestone in its 3D modeling business for ecommerce by hitting 80% gross profit in Q2, 2024 which is up 166% from 30% in 2023. This milestone achievement is only possible through the company's investment in AI and its pivot to Hyderabad India in Q3, 2023
The company believes that it can become profitable in 2024 by scaling revenue with 80% profit margins while operating expenses are going down due to its investment in its patented AI. The strategic shift to Hyderabad India aligns perfectly with Nextech3D.ai's commitment to delivering top-tier 3D modeling and augmented reality solutions while maintaining a keen eye on profitability and fiscal responsibility for its valued shareholders.
Why AI and 3D Modeling, and Why Now?
The e-commerce landscape is evolving rapidly, with consumers demanding more interactive and engaging shopping experiences. This is where AI and 3D modeling technology come into play, offering a dynamic, immersive, and personalized shopping journey. The shift from 2D to 3D modeling for e-commerce is a major multi-decade transformation that is being led by AI. This transformation is evident as major brands and companies are incorporating 3D models and AR shopping, including Amazon, Walmart, CB2, IKEA, Sephora, Target and more.
Amazon (AMZN - Worth $2 Trillion) Amazon is leading this shift, transitioning from traditional 2D images to 3D models for all their products, setting a new standard in online retail. Nextech3D.ai is proud to be a 3D model supplier for Amazon, already creating tens of thousands of 3D models per month.
The Power of 3D Models in E-Commerce
3D models in e-commerce enable customers to visualize products in high detail from every angle, significantly enhancing decision-making confidence. This shift leads to higher conversion rates, as customers are more likely to purchase when they can thoroughly explore a product. Moreover, 3D visualization reduces returns, as buyers have a clearer expectation of what they are purchasing, thus saving costs and improving customer satisfaction. Additionally, interactive 3D models increase customer engagement, keeping them on your site longer, which directly correlates with increased sales.
Timely
As online shopping continues to grow, the demand for more immersive and interactive experiences is growing. Businesses adopting 3D models are setting new benchmarks for customer engagement and satisfaction.
Nextech3D.ai believes it stands at the forefront of this mega-trend, leading the shift from static 2D images to immersive 3D experiences. Its patented AI-powered 3D modeling technology creates photo-realistic 4K 3D models that cater to major e-commerce platforms like Amazon. With years of expertise and a portfolio of high-profile clients including Amazon, P&G, Kohls, Miele and others - Nextech3D.ai is transforming online shopping into an interactive adventure.
Management Changes:
Anum Wagas, CPA, CGA, previously the Director of Finance for Nextech3D.ai has been appointed interim Chief Financial Officer. Anum brings over a decade of experience from multinational companies and government sectors, with a strong background in financial reporting under IFRS. She succeeds Andrew Chan, who is taking a new job in different industries. The Board expresses appreciation for his contributions and wishes him success.
Recent News
Nextech3D.ai Announces Formation of AI Incubator and AI Acquisition & Development Division With Potential 2024 IPO Spin Out
Nextech3D.ai Establishes New Business Unit Led by Former META Executive, Targeting Jewelry Industry with GPT AI CAD-3D Models, Blockchain Technology, and NFTs
Nextech3D.ai Expands AI Tech Team and Doubles Office Space As Demand Increases For GPT AI Platform and 3D Model Production In Hyderabad, India
Nextech3D.ai Launches Next Era of GPT AI 3D Solutions Led by Former Microsoft Executive
Nextech3D.ai Lands $1.8 Million 3D Modeling Deal with NASDAQ 100 Technology Company
Nextech3D.ai Reports $5 Million in 2023 Revenue, Growth Up +56% Preliminary Unaudited Results
Sign up for Investor News and Info - Click Here
About Nextech3D.ai
Nextech3D.ai or the "Company," (OTCQX:NEXCF)(CSE:NTAR)(FSE:EP2), is a versatile augmented reality and AI technology Company that utilizes its proprietary artificial intelligence (AI) to craft immersive 3D experiences at scale for E-COMMERCE. The Company's primary focus lies in creating high-quality 3D WebAR photorealistic models for Amazon and various other online retailers. Nextech3D.ai has adopted a unique approach to creating shareholder value beyond its operating business of creating 3D models.
The Company also develops or acquires disruptive AI-technologies, which are subsequently spun out to shareholders as standalone public companies. This spin-out strategy allows Nextech3D.ai to issue stock dividends to its shareholders while maintaining significant ownership in the public spin-out, without dilution to the parent Company Nextech3D.ai.
Notably, Nextech3D.ai successfully spun out "ARway," (OTCQB:ARWYF)(CSE:ARWY)(FSE:E65) its spatial computing platform, as a standalone public Company on October 26, 2022. The Company retains a 49% stake with 13 million shares in ARway Corp. while distributing 4 million shares to Nextech shareholders.
Similarly, Nextech3D.ai accomplished its second spin-out launching Toggle3D.ai, (OTCQB:TGGLF)(CSE:TGGL)(FSE:Q0C) an AI-powered 3D design studio aimed at competing with Adobe. The Company retains a 44% stake with 13 million shares in Toggle3D.ai Corp.
To learn more, please follow us on Twitter, YouTube, Instagram, LinkedIn, and Facebook, or visit our website: https://www.Nextechar.com.
For further information, please contact:
Investor Relations Contact
Julia Viola
investor.relations@nextechar.com
Evan Gappelberg
CEO and Director
866-ARITIZE (274-8493)
Forward-looking Statements
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Certain information contained herein may constitute "forward-looking information" under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as, "will be" or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements regarding the completion of the transaction are subject to known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove to be accurate, as future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Nextech will not update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.
SOURCE:Nextech3D.ai
View the original press release on accesswire.com
News Provided by ACCESSWIRE via QuoteMedia
Nextech3D.ai Reports Fiscal Year 2023 and Fourth Quarter 2023 Audited Financial Results
2023 Annual revenue growth of + 56%
2023 Annual revenue of $5 million
Nextech3D.ai (OTCQX:NEXCF)(CSE:NTAR)(FSE:EP2), a patented 2D-3D Generative AI-Powered 3D model supplier (Patent #11,948,248) for Amazon, Miele, P&G, Kohls, Wesfarmers Group "Bunnings" and other major e-commerce retailers reports its Fiscal Year 2023 and Fourth Quarter 2023 Financial Results the year ended December 31, 2023
Please join Evan Gappelberg, Chief Executive Officer and Andrew Chan, Chief Financial Officer today after the close where Nextech3D.ai will host a conference call to discuss these financial results.
Evan Gappelberg - CEO Commentary:
Preliminary Annual 2023 Financial Highlights
2023 Annual revenue growth of + 56%
2023 Annual revenue of $5 million compared to $3.2 million in 2022
70,000 3D models created to date
2024 Outlook
New demand for 3D models expected to gain momentum throughout the year driven by large enterprise customers
2023-Cost cutting measures and pivot to India to reduce the company's burn in 2024 by as much as 75%
Q1 2024 Gross Profit margins estimated to be 50-55%
Q2 2024 Gross margin estimated to be 80%
Q2 Improved margins puts India 3D modeling business as a stand alone business unit projected to go cash flow positive
New 3D photography and AI driven product launches expected to drive additional revenue and growth in 2024
Multiple patents already issued in 2024 with additional patent issuances expected
Company is Launching Several Enhanced AI 3D Productivity Tools in Q2, Q3 2024
Nextech3D.ai Corporation
Statement of Financial Position
December 31, 2023
| 31-Dec-23 | 31-Dec-22 | |||||||
ASSETS | ||||||||
Current | ||||||||
Cash & cash equivalents | 907,847 | 3,777,117 | ||||||
Receivables | 357,398 | 744,331 | ||||||
Contract asset | 51,320 | 589,015 | ||||||
Finance lease receivable on sublease CP | 199,933 | - | ||||||
Prepaid expenses | 294,471 | 310,906 | ||||||
Inventory | - | 45,289 | ||||||
Non current assets held for sale | - | 501,188 | ||||||
Total current assets | 1,810,969 | 5,967,846 | ||||||
Equipment | 325,633 | 278,463 | ||||||
Deferred consideration | 206,850 | - | ||||||
Right of use asset | - | 829,278 | ||||||
Finance lease receivable on sublease | 642,983 | - | ||||||
Intangible assets | - | 3,313,741 | ||||||
Goodwill | - | 6,746,378 | ||||||
Total assets | 2,986,435 | 17,135,706 | ||||||
LIABILITIES | ||||||||
Current | ||||||||
Accounts payable and accrued liabilities | 3,531,460 | 2,641,918 | ||||||
Deferred revenue | 342,192 | 437,746 | ||||||
Lease liability | 143,722 | 222,250 | ||||||
Liabilities associated with assets held for sale | - | 92,532 | ||||||
Total current liabilities | 4,017,374 | 3,394,446 | ||||||
Lease liability - non current | 469,624 | 582,586 | ||||||
Deferred tax liabilities | - | 29,974 | ||||||
Total liabilities | 4,486,998 | 4,007,006 | ||||||
Shareholders' Equity | ||||||||
Share capital | 91,909,495 | 83,271,707 | ||||||
Reserves | 14,166,972 | 12,754,706 | ||||||
Accumulated Other Comprehensive Income | 678,143 | 827,101 | ||||||
Shareholder's equity attributable to Nextech shareholders | (112,211,223 | ) | (85,898,862 | ) | ||||
Total common shareholders' equity | (5,456,613 | ) | 10,954,652 | |||||
Non controlling interest | 3,956,050 | 2,174,048 | ||||||
Total equity | (1,500,563 | ) | 13,128,700 | |||||
Total liabilities and shareholders' equity | 2,986,435 | 17,135,706 | ||||||
Nextech3D.ai Corporation
Statement of Loss and Comprehensive Loss
December 31, 2023
| YTD | ||||||||||||||
| 31-Dec-23 | 31-Dec-22 | |||||||||||||
| $ | $ | |||||||||||||
Revenue | 5,033,202 | 3,224,791 | ||||||||||||
Cost of sales | (3,586,162 | ) | (1,593,076 | ) | ||||||||||
Gross profit | 1,447,040 | 1,631,715 | ||||||||||||
Operating expenses: | ||||||||||||||
Sales and marketing | 4,546,502 | 5,013,367 | ||||||||||||
General and administrative | 9,362,610 | 13,377,575 | ||||||||||||
Research and development | 3,249,799 | 3,892,208 | ||||||||||||
Stock based compensation | 1,775,695 | 1,715,690 | ||||||||||||
Amortization | 2,105,689 | 2,655,652 | ||||||||||||
Right of use amortization | 55,728 | 76,905 | ||||||||||||
Depreciation | 87,824 | 122,930 | ||||||||||||
Operating profit (loss) | (19,736,807 | ) | (25,222,612 | ) | ||||||||||
Other income (expense): | ||||||||||||||
Gain on sublease recognition | 120,626 | - | ||||||||||||
Loss on asset disposal | (85,679 | ) | - | |||||||||||
Gain on liability | - | 381,019 | ||||||||||||
Impairment of intangible assets and goodwill | (7,575,263 | ) | (476,113 | ) | ||||||||||
Foreign exchange gain (loss) | (14,393 | ) | 1,345,593 | |||||||||||
Profit (Loss) before income taxes | (27,291,516 | ) | (23,972,113 | ) | ||||||||||
Current income tax expense | - | (34,937 | ) | |||||||||||
Deferred income tax recovery | 29,974 | 672,148 | ||||||||||||
Net income (loss) from continuing operations | (27,261,542 | ) | (23,334,902 | ) | ||||||||||
Income (loss) from discontinued operations | (452,814 | ) | (4,043,424 | ) | ||||||||||
Net loss | (27,714,356 | ) | (27,378,326 | ) | ||||||||||
Other comprehensive income (loss) | ||||||||||||||
Exchange differences on translating foreign operations, continuing operations | (148,958 | ) | (432,845 | ) | ||||||||||
Comprehensive income (loss) | (27,863,314 | ) | (27,811,171 | ) | ||||||||||
Net loss from C/O attributed to: | ||||||||||||||
Parent | (25,109,547 | ) | (22,896,701 | ) | ||||||||||
Non controlling interest - PL | (2,151,995 | ) | (438,201 | ) | ||||||||||
Net loss from D/O attributed to: | ||||||||||||||
Parent | (452,814 | ) | (4,043,424 | ) | ||||||||||
Non controlling interest - PL | - | - | ||||||||||||
Comprehensive loss attributed to: | ||||||||||||||
Parent | (25,711,319 | ) | (27,372,970 | ) | ||||||||||
Non controlling interest | (2,151,995 | ) | (438,201 | ) | ||||||||||
Loss per share from C/O - basic and diluted | (0.22 | ) | (0.24 | ) | ||||||||||
Loss per share from D/O - basic and diluted | (0.00 | ) | (0.04 | ) | ||||||||||
| Weighted average number of common shares outstanding | ||||||||||||||
Basic and diluted | 114,085,494 | 100,201,691 | ||||||||||||
Nextech3D.ai Corporation
Statement of Cash Flow
December 31, 2023
| YTD | ||||||||
| 31-Dec-23 | 31-Dec-22 | |||||||
Operating activities: | ||||||||
Net loss | (27,714,356 | ) | (27,378,326 | ) | ||||
Adjustment for: | ||||||||
Interest income from sublease | (39,903 | ) | - | |||||
Interest expense from lease | 30,217 | 28,668 | ||||||
Stock based compensation | 1,775,695 | 1,715,690 | ||||||
Amortization of intangible assets | 2,105,689 | 2,655,652 | ||||||
Amortization of ROU | 55,728 | 261,101 | ||||||
Depreciation of property and equipment | 87,824 | 143,567 | ||||||
Gain on sublease recognition | (120,626 | ) | - | |||||
Loss on asset disposal | 85,679 | - | ||||||
Gain on short-term investment | - | (381,019 | ) | |||||
Impairment of intangible assets & goodwill | 7,759,360 | 3,178,426 | ||||||
Expenses paid by shares | 648,891 | 1,917,837 | ||||||
Loss on PET disposal | 173,534 | - | ||||||
Income tax expense (recovery) | - | - | ||||||
Changes in non-cash working capital balances | ||||||||
Receivables | 386,933 | 269,873 | ||||||
Contract asset | 537,695 | (202,813 | ) | |||||
Prepaid expenses | 16,435 | 408,743 | ||||||
Inventory | 45,289 | 2,954,342 | ||||||
Accounts payable and accrued liabilities | 917,814 | (24,574 | ) | |||||
Deferred revenue | (95,554 | ) | (171,255 | ) | ||||
Deferred tax liability | - | (673,290 | ) | |||||
Total operating cash flow | (13,343,656 | ) | (15,297,378 | ) | ||||
Cashflows from investing activities | ||||||||
Purchase of equipment | (227,250 | ) | (101,784 | ) | ||||
Payments received from sublease | 66,554 | - | ||||||
Net cash provided by (used in) investing activities, continuing operations | (160,696 | ) | (101,784 | ) | ||||
Cashflows from financing activities | ||||||||
NTAR - Net proceeds from private placements | 5,726,654 | 8,890,349 | ||||||
NTAR - Proceeds from Employee Pay Program | 2,269,704 | 2,496,628 | ||||||
Proceeds from securities issuances to NCI | 2,813,107 | 1,657,354 | ||||||
Repayment of loan | - | (90,896 | ) | |||||
Payments of lease liability | (203,762 | ) | (388,804 | ) | ||||
Net cash provided by (used in) financing activities, continuing operations | 10,605,703 | 12,564,631 | ||||||
Effects of foreign exchange on cash | 29,379 | (616,272 | ) | |||||
Change in cash during the period | (2,898,649 | ) | (2,834,531 | ) | ||||
Cash, beginning of period | 3,777,117 | 7,237,296 | ||||||
Cash, end of period, continuing operations | 907,847 | 3,786,493 | ||||||
Cash, end of period, continuing operations | 907,847 | 3,777,117 | ||||||
Cash, end of period, discontinuing operations | - | 9,376 | ||||||
Taxes paid | - | 27,005 | ||||||
Interest paid | 30,217 | 30,910 | ||||||
Cash interest received | 121,122 | 108,390 | ||||||
Conference Call Details:
Title: Nextech3D.ai Full Year 2023 and Q4 2023 Financial Results
Call Date: Monday, April 29, 2024
Time: 05:00 PM (GMT-04:00) Eastern Time (US and Canada)
Participant Details:
North America Toll-Free: (888) 330-2024
North America Toll: (646) 960-0187
International Toll: +1(646) 960-0187
Conference ID: 7778367
Webcast Attendee URL: https://events.q4inc.com/attendee/810085104
For those unable to join the live event, a recording of the presentation will be posted on the Company's investor relations website.
Sign up for Investor News and Info -Click Here
For further information, please contact:
Investor Relations Contact
Julia Viola
investor.relations@nextechar.com
Nextech3D.ai
Evan Gappelberg
CEO and Director
866-ARITIZE (274-8493)
About Nextech3D.ai
Nextech3D.ai or the "Company," (OTCQX:NEXCF)(CSE:NTAR)(FSE:1SS), is a versatile augmented reality and AI technology company that utilizes its proprietary artificial intelligence (AI) to craft immersive 3D experiences at scale for E-COMMERCE. The Company's primary focus lies in creating high-quality 3D WebAR photorealistic models for Amazon and various other online retailers with patented 2D-3D technology. Nextech3D.ai has adopted a unique approach to creating shareholder value beyond its operating business of creating 3D models.
The Company also develops or acquires disruptive AI-technologies, which are subsequently spun out to shareholders as standalone public companies. This spin-out strategy allows Nextech3D.ai to issue stock dividends to its shareholders while maintaining significant ownership in the public spin-out, without dilution to the parent company Nextech3D.ai.
Notably, Nextech3D.ai successfully spun out "ARway," (OTCQB:ARWYF)(CSE:ARWY)(FSE:E65) its spatial computing platform, as a standalone public company on October 26, 2022. The Company retains a 49% stake with 13 million shares in ARway Corp. while distributing 4 million shares to Nextech shareholders.
Similarly, Nextech3D.ai accomplished its second spin-out launching Toggle3D.ai, (OTCQB:TGGLF)(CSE:TGGL)(FSE:Q0C) an AI-powered 3D design studio aimed at competing with Adobe. The Company retains a 44% stake with 13 million shares in Toggle3D.ai Corp.
To learn more, please follow us on Twitter, YouTube, Instagram, LinkedIn, and Facebook, or visit our website: https://www.Nextechar.com.
Forward-looking Statements
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Certain information contained herein may constitute "forward-looking information" under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as, "will be" or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements regarding the completion of the transaction are subject to known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove to be accurate, as future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Nextech will not update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.
SOURCE: Nextech3D.ai
View the original press release on accesswire.com
News Provided by ACCESSWIRE via QuoteMedia
Nextech3D.ai is Participating In The Supplier Network of GlassDollar, Which Extends Nextech3D.ai Reach to Large Corporations, Such As Siemens, LG, BSH, Infineon
Nextech3D.ai (OTCQX:NEXCF)(CSE:NTAR)(FSE:EP2), a leading provider of patented 2D-3D Generative AI-powered 3D modeling technologies to major e-commerce brands like Amazon, Miele, P&G, Kohls, and Wesfarmers Group's "Bunnings", has announced a collaboration with GlassDollar. This collaboration highlights the demand for Nextech3D.ai's innovative solutions from large corporations-including CAD to 3D texturing, 3D photo rendering, data analytics, generative AI, spatial computing, and 3D cloud hosting. Through this collaboration Nextech3D.ai is participating in the supplier network of GlassDollar, which extends Nextech3D.ai reach to large Corporations, such as Siemens, LG, BSH, Infineon and more
Nextech3D.ai, along with its subsidiaries Toggle3D.ai and ARway.ai, is excited to be invited to bring its advanced technologies to this collaboration. This collaboration serves to both enhance GlassDollars product offerings to meet the specific needs of GlassDollar's clients while establishing potential new relationships and revenue streams for Nextech3D.ai.
Evan Gappelberg, CEO of Nextech3D.ai, stated, "Working with GlassDollar provides a seamless avenue for innovative tech startups like Nextech3D.ai, Toggle3D.ai and ARway.ai to engage with large enterprises, in a frictionless environment. He continues "GlassDollar's ability to pair our solution directly with large corporations that are looking for the same solution is a breath of fresh air. They have done the hard work of finding a potential customer but they don't stop there…they continue to foster the business relationship by setting up follow up calls and making further introductions all while being professional, diligent and proactive through the entire process. We are thrilled about this collaboration and look forward to fostering a long-lasting relationship.``
After markets close on Monday, April 29, 2024 the company will release its audited full year and fourth quarter 2023 financial results
In February, the Company released the preliminary unaudited results showing strong annual revenue growth of +56% to $5 million compared to $3.2 million in 2022. Annual gross profit margin for 2024 is estimated at 30% with the Company's pivot to India in Q4, 2023. Thank you to all of our customers, employees, suppliers, shareholders and supporters who helped us achieve a great 2023.
Subsequently, Nextech will host a conference call to discuss the full year and fourth quarter 2023 results Monday, April 29, 2024 at 5:00 PM Eastern Time.
Please join Evan Gappelberg, Chief Executive Officer, and Andrew Chan, Chief Financial Officer, to discuss these financial and operating results as well as a 2024 business outlook- cost cutting -and cash flow followed by a question and answer period.
Preliminary Annual 2023 Financial Highlights
2023 Annual revenue growth of 56%
2023 Annual revenue of $5 million compared to $3.2 million in 2022
70,000 3D models created 12/32/2023.
Conference Call Details:
Title: Nextech3D.ai Full Year 2023 and Q4 2023 Financial Results
Call Date: Monday, April 29, 2024
Time: 05:00 PM (GMT-04:00) Eastern Time (US and Canada)
Participant Details:
North America Toll-Free: (888) 330-2024
North America Toll: (646) 960-0187
International Toll: +1(646) 960-0187
Conference ID: 7778367
Webcast Attendee URL: https://events.q4inc.com/attendee/810085104
For those unable to join the live event, a recording of the presentation will be posted on the Company's Investor Relations website.
Recent News
Nextech3D.ai Releasing New 3D GPT-AI For Toggle3D.ai The "All-IN-ONE 3D Platform"
Nextech3D.ai Issued Pivotal AI Patent from USPTO for Generating 3D Models from 2D Images
Nextech3D.ai Receives Notice From USPTO To Be Granted Pivotal AI Patent for Generating 3D Models from 2D images
Sign up for Investor News and Info - Click Here
For further information, please contact:
Investor Relations Contact
Julia Viola
investor.relations@nextechar.com
Evan Gappelberg
CEO and Director
866-ARITIZE (274-8493)
About Nextech3D.ai
Nextech3D.ai or the "Company," (OTCQX:NEXCF)(CSE:NTAR)(FSE:1SS), is a versatile augmented reality and AI technology company that utilizes its proprietary artificial intelligence (AI) to craft immersive 3D experiences at scale for E-COMMERCE. The Company's primary focus lies in creating high-quality 3D WebAR photorealistic models for Amazon and various other online retailers with patented 2D-3D technology. Nextech3D.ai has adopted a unique approach to creating shareholder value beyond its operating business of creating 3D models.
The Company also develops or acquires disruptive AI-technologies, which are subsequently spun out to shareholders as standalone public companies. This spin-out strategy allows Nextech3D.ai to issue stock dividends to its shareholders while maintaining significant ownership in the public spin-out, without dilution to the parent company Nextech3D.ai.
Notably, Nextech3D.ai successfully spun out "ARway," (OTCQB:ARWYF)(CSE:ARWY)(FSE:E65) its spatial computing platform, as a standalone public company on October 26, 2022. The Company retains a 49% stake with 13 million shares in ARway Corp. while distributing 4 million shares to Nextech shareholders.
Similarly, Nextech3D.ai accomplished its second spin-out launching Toggle3D.ai, (OTCQB:TGGLF)(CSE:TGGL)(FSE:Q0C) an AI-powered 3D design studio aimed at competing with Adobe. The Company retains a 44% stake with 13 million shares in Toggle3D.ai Corp.
Forward-looking Statements
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Certain information contained herein may constitute "forward-looking information" under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as, "will be" or variations of such words and phrases or statements that certain actions, events or results "will" occur. Forward-looking statements regarding the completion of the transaction are subject to known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove to be accurate, as future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Nextech will not update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws.
SOURCE:Nextech3D.ai
View the original press release on accesswire.com
News Provided by ACCESSWIRE via QuoteMedia
How to Invest in OpenAI's ChatGPT
In September 2024, Reuters reported that OpenAI is planning a restructuring that would see the non-profit become a for-profit company in order to make it "more attractive to investors." The non-profit OpenAI will still exist on its own and have a minority stake in the for-profit company. CEO Sam Altman will also receive an equity position in the new for-profit OpenAI. The company is planning to make this transition in 2025.
OpenAI completed a new round of funding totaling US$6.6 billion in early October projected to bring its valuation to more than US$157 billion. Tech giants NVIDIA (NASDAQ:NVDA) and Microsoft (NASDAQ:MSFT) took part in the funding round.
Many investors are wondering if it's possible to invest in ChatGPT stock, and if there are other ways to invest in generative AI. Here the Investing News Network (INN) answers those questions and more, shedding light on this new landscape.
In this article
- What is OpenAI's ChatGPT?
- What is the Stargate Project?
- How much has Microsoft invested in OpenAI?
- What is Elon Musk's relationship to OpenAI?
- OpenAI criticisms and lawsuits
- What's the future of OpenAI and ChatGPT?
- When will OpenAI go public?
- Which stocks will benefit the most from AI chatbot technology?
- FAQs for investing in OpenAI and ChatGPT
What is OpenAI's ChatGPT?
Created by San Francisco-based tech lab OpenAI, ChatGPT is a generative AI software application that uses a machine learning technique called reinforcement learning from human feedback (RLHF) to emulate human-written conversations based on a large range of user prompts. This kind of software is better known as an AI chatbot.
ChatGPT learns language by training on texts gleaned from across the internet, including online encyclopedias, books, academic journals, news sites and blogs. Based on this training, the AI chatbot generates text by making predictions about which words (or tokens) can be strung together to produce the most suitable response.
More than a million people engaged with ChatGPT within the first week of its launch for free public testing on November 30, 2022. The introduction of ChatGPT quickly ushered in a new era in the tech industry.
“With the launch of ChatGPT late in 2022, the true scale of its disruptive potential was more realized across the world in 2023,” said Naseem Husain, senior vice president and exchange-traded fund (ETF) strategist at Horizons ETFs, in an interview with the Investing News Network. “Its success has sparked a wave of generative and chat AI models, from Midjourney to Grok.”
Based on this success, OpenAI created a more powerful version of the ChatGPT system called GPT-4, which was released in March 2023. This iteration of ChatGPT can accept visual inputs, is much more precise and can display a higher level of expertise in various subjects. Because of this, GPT-4 can describe images in vivid detail and ace standardized tests.
Unlike its predecessor, GPT-4 doesn't have any time limits on what information it can access; however, AI researcher and professor Dr. Oren Etzioni has said that the chatbot is still terrible at discussing the future and generating new ideas. It also hasn't lost its tendency to deliver incorrect information with too high a degree of confidence.
Further improving on its product, in May 2024 OpenAI launched Chat GPT-4o, with the o standing for omni. OpenAI describes GPT-4o as "a step towards much more natural human-computer interaction—it accepts as input any combination of text, audio, image, and video and generates any combination of text, audio, and image outputs."
This version has done away with the lagging response time afflicting GPT-4. This proves especially helpful for producing immediate translations during conversations between speakers of different languages. It also allows users to interrupt the chatbot to pose a new query to modify responses.
More recently, in December 2024, OpenAI introduced ChatGPT Pro subscriptions targeting engineers and academics. For US$200 monthly, users have nearly unlimited access to all ChatGPT models and tools.
The ChatGPT 3.5 and ChatGPT-4 platforms are free to use, and can be accessed via the web. Those with an iPhone or iPad can also use ChatGPT through an app, and an Android version launched in July 2023. OpenAI also launched a paid subscription, ChatGPT Plus for business use, in August 2023. ChatGPT Plus gives users access to GPT-4 and the newest iteration GPT-4o.
What is the Stargate Project?
The Stargate Project is an AI joint venture focused on building new AI infrastructure in the US through US$500 billion in investments. It was announced on January 21, 2025.
Stargate’s initial funding is coming from OpenAI, Japanese multinational investment firm SoftBank, Oracle (NYSE:ORCL) and UAE-based technology fund MGX. In addition to OpenAI and Oracle, Stargate’s technology partners include Microsoft, NVIDIA, and British semiconductor and software design company Arm Holdings (NASDAQ:ARM).
Newly re-elected US President Trump unveiled Stargate during a press conference at the White House highlighting the importance of investment in US AI infrastructure. During the announcement, OpenAI’s Altman, Oracle co-founder Larry Ellison and Softbank CEO Masayoshi Son credited President Trump’s return to office as a major catalyst in making Stargate a reality. The construction of data centers for the Stargate Project are already underway in Texas, according to Ellison.How much has Microsoft invested in OpenAI?
Ascannio / Shutterstock
Over the years, Microsoft has reportedly invested nearly US$14 billion in OpenAI to help the small tech firm create its ultra-powerful AI chatbot.
As for how Microsoft could benefit from its investment in OpenAI, OpenAI officially licensed its technologies to Microsoft in 2020 in a then-exclusive partnership. Indeed, Pitchbook has described the deal as an “unprecedented milestone” for generative AI technology. Since then, Microsoft has made good use of OpenAI’s technology in developing new advancement in its Azure cloud computing business.
However, the relationship between the two has changed in recent months.
Notably, Microsoft is not a financier of the Stargate Project joint venture, and is instead just described as a technology partner. According to OpenAI’s press release, the new joint venture builds on its existing partnership with Microsoft.
Microsoft’s lack of a funding role in Stargate led some to wonder if the trillion-dollar tech firm had soured on its relationship with OpenAI. This conclusion was understandable given reports that Microsoft refused to make a bigger contribution than the US$750 million it invested during the OpenAI US$6.6 billion funding round in October.
Additionally, Microsoft changed the contract between the two companies and is no longer the exclusive cloud provider for OpenAI, but has the right of first refusal for deals the AI firm may make with other cloud companies.
As Bloomberg technology reporter Dina Bass explained, Microsoft stands to benefit from its role as a technology partner without having to invest a dime into the project.
“Microsoft views the revised contract with OpenAI as advantageous, according to people familiar with the company’s thinking. The software giant retains its share of OpenAI’s revenue and is the largest investor in a company that may now become even more valuable — though the size of that stake could change as the startup works to restructure as a for-profit,” wrote Bass. “And Microsoft also still has access to OpenAI models, even if they’re trained in a data center funded by Softbank or Oracle.”
Elon Musk's position on OpenAI
DIA TV / Shutterstock
OpenAI was founded in 2015 by Altman, its current CEO, as well as Tesla (NASDAQ:TSLA) CEO Elon Musk and other big-name investors, such as venture capitalist Peter Thiel and LinkedIn co-founder Reid Hoffman. Musk left his position on OpenAI's board of directors in 2018 to focus on Tesla and its pursuit of autonomous vehicle technology.
A few days after ChatGPT became available for public testing, Musk took to X, formerly known as Twitter, to say, “ChatGPT is scary good. We are not far from dangerously strong AI.” That same day, he announced that X had shut the door on OpenAI’s access to its database so it could no longer use it for RLHF training.
His reason: “OpenAI was started as open-source & non-profit. Neither are still true.”
Furthering his feud with OpenAI, Musk filed a lawsuit against the company in March 2024 for an alleged breach of contract. The crux of his complaint was that OpenAI has broken the "founding agreement" made between the founders (Altman, Greg Brockman and himself) that the company would remain a non-profit. Altman and OpenAI have denied there was such an agreement and that Musk was keen on an eventual for-profit structure.
Musk dropped the lawsuit three months later without giving a reason, reported Reuters. The day before he dropped the lawsuit, he reacted to the news that Apple (NASDAQ:AAPL) is partnering with OpenAI to incorporate ChatGPT with Apple devices. On X, Musk declared, "If Apple integrates OpenAI at the OS (operating system)level, then Apple devices will be banned at my companies. That is an unacceptable security violation.” It should be noted that OpenAI has said queries completed on Apple devices will not be stored by OpenAI. By August 2024, Musk had resumed his litigation in federal court.
It seems that the US government also has questions about the restructuring of the private company and the involvement of tech giant Microsoft, as reported by Bloomberg. In early January 2025, the Financial Press also reported the Federal Trade Commission (FTC) has raised questions about the potential anti-trust violations in the newly emerging AI technology space arising from Microsoft's partnership with and investments in OpenAI.
Of course, Musk took to X to weigh in on the Stargate Project, suggesting OpenAI and its partners don’t actually have the US$500 million they’ve pledged to invest. Sam Altman was quick to reply, telling Musk he’s mistaken and inviting him to visit their data center under construction in Texas.
However, Musk is not alone in his skepticism. For example, Atreides Management Chief Investment Office Gavin Baker also questioned the deal on X. “Stargate is a great name but the $500b is a ridiculous number and no one should take it seriously,” said Baker, backing up his statement by explaining the financial positions of each of the partners. “Nowhere close to $500b. Everyone should just start issuing press releases for $1 trillion AI projects,” he added.OpenAI criticisms and lawsuits
While ChatGPT has served as a major step forward in generative AI technology, there are many technical and ethical concerns with the program that have emerged since it launched, including fears over job destruction and targeted disinformation campaigns.
Accuracy of information in ChatGPT's answers is not guaranteed. Its selection of which words to string together are actually predictions — not as fallible as mere guesses, but still fallible. Even the 4.0 version is “still is not fully reliable (it “hallucinates” facts and makes reasoning errors),” says the company, which emphasizes that users should exercise caution when employing the technology.
Indeed, ChatGPT's failings can have dangerous real-life consequences. Among other negative applications, the tech can be used to spread misinformation, carry out phishing email scams or write malicious code.
There’s also the fear among teachers that the technology is leading to an unwelcome rise in academic dishonesty, with students using ChatGPT to write essays or complete their homework.
“Teachers and school administrators have been scrambling to catch students using the tool to cheat, and they are fretting about the havoc ChatGPT could wreak on their lesson plans,” writes New York Times tech columnist Kevin Roose.
Many lawsuits against OpenAI have emerged as well. Multiple news outlets, including the the New York Times, have launched copyright lawsuits against OpenAI, and some of the plaintiffs are also seeking damages from the private tech firm’s very public partner Microsoft.
Additionally, the Authors Guild, which represents a group of prominent authors, launched a class-action lawsuit against OpenAI that is calling for a licensing system that would allow authors to opt out of having their books used to train AI, and would require AI companies to pay for the material they do use.
In October, OpenAI researcher Suchir Balaji blew the whistle on the company, reporting that the firm was violating US copyright laws. He died one month later in what was ruled a suicide, but the investigation is still open.
Cybersecurity risks are also a concern for ChatGPT users, and recent events along these lines add validity to Musk's warning. For one, in 2024 ChatGPT for macOS was discovered to be breaching Apple's security rules by storing data as plain text rather than encryption, making it possible for other apps to access.
What's the future of OpenAI and ChatGPT?
What about the long-term goals for OpenAI and ChatGPT? For most of the tech leaders in this space, the end game is artificial general intelligence (AGI) — a system that can perform any function the human brain can, including self-teaching, abstract thinking and understanding cause and effect.
As uptake increases, AI technology is taking over the role of humans and will likely continue doing so in a number of fields, from content creation and customer service to transcription and translation services, and even in graphic design, software engineering and paralegal fields.
In addition to Microsoft's use of the ChatGPT technology as part of Copilot, other companies are working with OpenAI to incorporate the technology into their platforms, including Canva, Duolingo (NASDAQ:DUOL), Expedia (NASDAQ:EXPE), Intercom, Salesforce (NYSE:CRM), Scale, Stripe and Upwork (NASDAQ:UPWK).
For 2025, OpenAI is focusing on developing agentic AI capabilities into its ChatGPT platform. Agentic AI, a part of the evolution towards AGI, involves AI systems and models that can act autonomously and complete tasks without much human guidance. Early in January, OpenAI announced the rollout of new task features for ChatGPT Pro, Plus and Teams users. While still in the beta stage, these features allow users to schedule future tasks to be completed by ChatGPT, such as a weekly news brief or reminders about important meetings.
OpenAI first debuted its foray into agentic AI in September 2024 with the introduction of ChatGPT o1, stating "We've developed a new series of AI models designed to spend more time thinking before they respond." The release of the next iteration of this model, ChatGPT o3 mini, is anticipated for 2025.
OpenAI is planning to transition to a for-profit company in 2025. “As we enter 2025, we will have to become more than a lab and a startup — we have to become an enduring company,” stated the press release. “The world is moving to build out a new infrastructure of energy, land use, chips, data centers, data, AI models, and AI systems for the 21st century economy. We seek to evolve in order to take the next step in our mission.”
However, the company can expect to face obstacles to its transition from not only Elon Musk but its other competitors including Meta Platforms (NASDAQ:META), and the complexity of its partnership with Microsoft.
The recent release of Chinese startup DeepSeek’s AI assistant may pose an even bigger problem for OpenAI and the US tech industry as a whole. In what tech gurus like Marc Andreesen call AI’s Sputnik moment, DeepSeek unseated ChatGPT as the most downloaded free app in the Apple App Store, at reportedly a fraction of the cost. For reference, in 1957 the Soviets launched Sputnik, the earth’s first artificial satellite, beating out the United States and sparking a Cold War space exploration race between the two nations.
The DeepSeek launch set off a significant sell off in technology stocks on January 27, 2025, especially among the Magnificent Seven members, including NVIDIA, Microsoft and Alphabet (NASDAQ:GOOGL).
When will OpenAI go public?
OpenAI stock is not currently publicly traded, but following the recent move to restructure the company from a non-profit to a for-profit entity, an initial public offering (IPO) may be in the works for 2025. For now, investors can gain exposure through related tech companies discussed here.
Which stocks will benefit the most from AI chatbot technology?
While most companies specializing in generative AI remain in the venture capital stage, there are plenty of AI stocks for those interested in the space. INN's article 5 Canadian Artificial Intelligence Stocks, ASX AI Stocks: 5 Biggest Companies, and 12 Generative AI Stocks to Watch as ChatGPT Soars includes some examples.
Other than companies directly tied to generative AI technology, which stocks are likely to get a boost from generative AI advancements?
There are several verticals in the tech industry with indirect exposure to AI chatbot technology, such as semiconductors, network equipment providers, cloud providers, central processing unit manufacturers and internet of things.
Some of the publicly traded companies in these verticals include:
- Graphics processing unit leader NVIDIA (NASDAQ:NVDA)
- The world's largest semiconductor chip manufacturer by revenue, Taiwan Semiconductor Manufacturing Company (NYSE:TSM)
- Computer memory and data storage producer Micron Technology (NASDAQ:MU)
- Digital communications firm Cisco Systems (NASDAQ:CSCO)
- Networking products provider Juniper Networks (NYSE:JNPR)
- Semiconductor producer Marvell Technology Group (NASDAQ:MRVL)
- Cloud-computing Amazon Web Services' parent company Amazon (NASDAQ:AMZN)
- Bluechip multinational technology company IBM (NYSE:IBM)
- Major semiconductor chip manufacturer Intel (NASDAQ:INTC)
Investors who don’t like to put all their eggs in one basket can check out these 5 Artificial Intelligence ETFs. And if you’re looking for a more general overview of the market, INN has you covered with How to Invest in Artificial Intelligence. You can also take a look back at the market in 2024 with our AI Market 2024 Year-End Review, or read projections for AI this year in our AI Market Forecast: 3 Top Trends that will Affect AI in 2025. Generative AI is also a major theme in the Top 10 Emerging Technologies to Watch.
FAQs for investing in OpenAI and ChatGPT
How is OpenAI funded?
OpenAI raised US$17.9 billion over 10 funding rounds from 2016 to November 2024.
Top investors include technology investment firm Thrive Capital, venture capital firm Andreessen Horowitz and revolutionary technology investment firm Founders Fund.
What is the market value of ChatGPT/OpenAI?
OpenAI has a market valuation of US$157 billion as of October 2024. The company’s 2023 revenue had reached US$2 billion mark in December 2023 to join the ranks of Google and Meta. OpenAI's annualized revenue reached US$3.4 billion in May 2024.
Does ChatGPT use NVIDIA chips?
ChatGPT’s distributed computing infrastructure depends upon powerful servers with multiple graphics processing units (GPUs). High-performance NVIDIA GPU chips are preferred for this application as they also provide excellent Compute Unified Device Architecture support.
What is DeepSeek?
DeepSeek is a Chinese AI company that launched new AI-driven, open-source language models known as DeepSeek-V3 and DeepSeek-R1 into the market in January 2025. Reuters reports that "the training of DeepSeek-V3 required less than $6 million worth of computing power from Nvidia H800 chips."
DeepSeek-R1 is designed to compete with the performance of OpenAI-o1 across math, code, and reasoning tasks.
Can ChatGPT make stock predictions?
A University of Florida study from 2023 highlighted the potential for advanced language models such as ChatGPT to accurately predict movements in the stock market using sentiment analysis.
During the course of the study, ChatGPT outperformed traditional sentiment analysis methods, and the finance professors conducting the research concluded that “incorporating advanced language models into the investment decision-making process can yield more accurate predictions and enhance the performance of quantitative trading strategies.”
When to expect ChatGPT 5?
In November 2024, Altman confirmed that ChatGPT-5 wouldn't likely hit the market until later in 2025 as the company switched its focus to ChatGPT o1 and its successors.
Previously, OpenAI filed a trademark application for ChatGPT-5 in mid-July 2023, which hinted that the next iteration of the generative AI technology is currently under development. There were rumors the company planned to complete training for ChatGPT-5 by the end of 2023, but this did not materialize.
PC Guide noted in April 2024 that Sam Altman had teased an “amazing new model this year" in an interview on the Lex Fridman podcast. The following month, tech writer Suswati Basu shared in a blog that OpenAI confirmed that a new model is in the works, and she predicted an expected release in late 2024 or early 2025.
This is an updated version of an article first published by the Investing News Network in 2023.
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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
